After Its Recent Slump, What's Next for Netflix Stock?

Netflix (NASDAQ: NFLX) is scheduled to report fiscal 2022 second-quarter earnings after the markets close on Tuesday, July 19. The streaming pioneer's stock has been down 69% in 2022 as it grapples with headwinds from the economic reopening and rising competition.

Investors will be laser-focused on Netflix's subscriber figures when it releases second-quarter results. The company has told investors to expect a loss of 2 million subscribers for Q2. If it reports subscriber numbers that are better than expected, it could be the catalyst that lifts the stock higher. Let's consider what else investors should be watching for in Netflix's second-quarter financial results.

Netflix thrived at the pandemic's onset as demand for in-home entertainment soared. The trend is reversing, and Netflix is having difficulty maintaining people's attention. The company lost 200,000 subscribers in its first quarter, which ended on March 31. It's forecasting a loss of 2 million more in Q2. The losses are due to more than just the economic reopening.

Source Fool.com